Supervision Guidelines

Compliance with guidelines

For the purposes of the Property, Stock and Business Agents Act 2002, s 32(4), the NSW Fair Trading Supervision Guidelines set out in detail what is required of the licensee in relation to the supervision of employees and the establishment and monitoring of compliance procedures.

The NSW Fair Trading Supervision Guidelines are set out in full below, along with links to the number of checklists developed by REINSW to assist licensees and their staff comply.

The REINSW checklists set out only the minimum requirements and may need to be amended in order to suit individual business practices.

Licensees should ensure that all agents and other relevant staff, employed now and in the future, read and understand the NSW Fair Trading Supervision Guidelines and REINSW checklists. Licensees should also ensure that the checklists are used as appropriate and should implement a review system to ensure compliance.

Staff recruitment

REINSW has also developed a checklist that may be used in the recruitment process. Download the checklist >>>

More information

REINSW members can obtain more information by contacting the Helpline on (02) 9264 2343.
 


  
Supervision Guideline 1

A licensee must have written procedures instructing employees of the agency as to their duties in regard to daily or next day banking practices of the agency with respect to the receipt of trust money. The licensee must be able to provide details of the process which the licensee uses to ensure employees comply with the procedures. Download the checklist >>>

Supervision Guideline 2

A licensee must have written procedures requiring a licensee to conduct a review of trust account cash flow on a monthly basis. The review must include a process which shows that the amounts banked to the trust account have been verified using the financial institution's records as source documents. Download the checklist >>>

Supervision Guideline 3

A licensee must have written procedures that set out the steps that all relevant staff must take to substantiate any selling price estimates which have been provided to a seller or prospective buyer. In framing such procedures, reference should be made to Estimated Price Guidelines which have been published by the Commissioner. Download the checklist >>>

Supervision Guideline 4

A licensee must maintain and be able to demonstrate that listing agents employed by the agency use a checklist in the property sales process for each matter to ensure that the following requirements are met:

  • All advertising material accurately describes the property concerned and that the information provided complies with the requirements of the relevant agency agreement and with the Act and Regulations;
  • Proper disclosures of conflicts of interest as required by Division 4 of the Act are made to clients, and where appropriate, any prospective buyer of land;
  • The listing agent engaged to sell the property is aware of the restrictions on obtaining a beneficial interest in property.
The completed checklist must be certified in writing by the agent representing the principal and be retained in the Sales File as a record.

Download the advertising checklist >>>

Download the conflict of interest and duty to disclose checklist >>>

Download the financial and investment advice checklist >>>

Supervision Guideline 5

A licensee must maintain documented complaint handling procedures. These procedures shall include a process that ensures that all complaints about staff behaviour towards consumers, and the agency's response to those complaints, are recorded and retained. The procedure is to provide that complaints of a financial nature are directed to the attention of the licensee in charge or the Manager to be supervised directly by that person. A separate record of the handling of financial complaints must be kept.

Supervision Guideline 6

Where any of the above requirements stipulate the preparation and use of a set of documented procedures a checklist, or a review system, the licensee must be able to produce this documentation to an authorised officer in accordance with the provisions of section 105 of the Act. The licensee must also be able to produce information demonstrating the regular use and maintenance of the required documentation within the agency.